FINANCIAL INCLUSION AND ITS IMPLICATIONS FOR INCLUSIVE GROWTH IN PAKISTAN

Financial Inclusion is considered an important means to realize the goal of inclusive economic growth. Present study examines the state of financial inclusion and its significance for inclusive growth in Pakistan. Empirical analysis suggests that Pakistan lags behind other countries visà- vis financial inclusion. The study utilizes probit estimation technique to find out the determinants of financial inclusion in Pakistan. It also investigates the relationship between perceived barriers to financial inclusion and individual characteristics. Determinants of various sources of borrowing are also investigated. Education level, income and gender discrimination are found to be important determining factors of financial inclusion. The results suggest that lack of money and requisite formalities are significant barriers to access financial services. It emphasizes comprehensive easy financial access to all segments of society to promote and enhance sustainable inclusive economic growth to benefit all.